David Jaffee teaches retail investors to trade options.
Sometimes referred to as “DIY investing,” options trading enables you to manage your portfolio without the oversight of a financial advisor. If you are interested in earning additional income, supplementing your current income, or gaining more financial freedom, learning to trade options can provide a great opportunity. Anyone can learn how to trade options, from teenagers to retirees, but that does not mean it is easy.
Should you learn options trading with David Jaffee?
David Jaffee has spent years trading options and coaching others on how to do the same. His impressive background includes an Ivy League education, time as an investment banker, and a thriving portfolio. Unlike other options trading coaches or popular gurus in the industry, David Jaffee shares the trades that he sends to his options trading signals / alerts students on YouTube.
Through BestStockStrategy.com, his YouTube channel, and blog articles, David Jaffee provides valuable information on how to trade options. His online options trading course details the best options trading strategy and provides step-by-step instructions for all experience levels. Whether you are searching for the best options trading strategies for beginners or tips for experienced traders, David Jaffee has your answer for everything related to options trading.
Can you be successful after learning options trading with David Jaffee?
Nobody wants to invest time and money into learning something new if they will not be successful. Thankfully, David Jaffee believes that students can win up to 98% of their trades. When you learn options trading with David Jaffee, you will discover a strategy that enables you to increase your income and be consistently profitable in all stock market environments.
David Jaffee teaches strategies for selling option premium, a method with lower risk and higher return opportunities. Lessons are broken down into 12 sections, including text and video content, to convey options trading topics in terms that are easy to understand. David Jaffee is also highly responsive to students in his options trading course, answering emails quickly and succinctly. Students in David Jaffee’s options trading course typically earn about 40% every year.
What can you expect when learning options trading with David Jaffee?
If you have followed options trading “gurus” in the past or taken an options trading course promising instant wealth, you will notice a considerable difference in David Jaffee’s material. Too many options trading coaches today lure students in with outlandish promises and provide very little substance in return. Through his options trading course, David Jaffee outlines how selling option premium provides the best statistical odds of predictably making a profit.
Unlike other options trading courses that encourage students to stay very active, David Jaffee preaches patience. His strategy is more similar to an insurance company than investment banking, which is how he makes consistent money. David Jaffee only makes a few trades per week, leaving plenty of time to teach his students. Some of his key principles are below.
1. Pick a watch list of stocks
No one can do it all, so it is important to narrow your field of vision when trading options. David Jaffee recommends creating a watch list of stocks that are relatively recession-proof. In the past, he has recommended Lockheed Martin, Raytheon, Amazon, McDonalds, Dollar General, JP Morgan, and Facebook as stocks to add to your watch list. This short list of stocks covers five sectors, offering good diversification.
David Jaffee then sells naked puts, naked calls and vertical credit spreads (both puts and calls) depending upon the market conditions so that he can optimize the premium collected while mitigating risk.
You can follow David Jaffee’s exact trades for insight into how he selects stocks. Real-time trade alerts teach students how to win up to 98% of their trades and become profitable traders.
2. Ignore the temptation to focus on stocks outside your watch list
Oftentimes stocks make big moves. However, if those stocks are not on your watch list, then ignore them! You do not want to sell puts and calls, or sell options, on stocks that are not on your watch list. Instead of being tempted by these occurrences, keep your focus on your watch list of stocks.
By focusing on your watch list, you will become familiar with their trading ranges. This practice helps you learn the nuances of trading and build your skills. Do not distract yourself with ancillary or competing information.
3. Wait for the stock to fall to the low end of its range
Patience is the name of the game when it comes to options trading. David Jaffee does not teach his students to trade often. Instead, he only makes a few trades throughout the week. His strategy involves waiting for stocks to correct and selling a put around 10-15% below the depressed market price.
On the call side, he recommends the same patient and disciplined approach.
David Jaffee sells calls opportunistically if it is a bear market or if the market is significantly overbought.
He also recommends opportunistically selling strangles if there is a good entry for both a put and call option position.